Raubex Group expects headline earnings per share to be no less than one hundred pc larger within the six months to August 31 compared with the comparative pre-Covid 19 interval, and its order books are additionally at document ranges.
The group, which has benefited from its diversified business mannequin and elevated tender exercise within the construction sector, significantly within the supplies provide operations, together with aggregates, asphalt and bitumen, stated additionally that the 117 cents per share headline earnings represented a turnaround from the 25.2c loss per share within the 2020 interim interval, when its operations had been severely impacted by pandemic lockdowns.
In the roads and earthworks division, a robust order ebook had been secured, supported by important contract awards by the SA National Roads Agency Ltd (Sanral) on the finish of 2020.
Work on all these initiatives had commenced and had been progressing nicely.
“The group is encouraged by the current tender activity in the market and further contract awards are anticipated,” administration stated in a buying and selling assertion yesterday.
The EPC contract referring to the growth, upgrading and enchancment of the Beitbridge Border Post Project in Zimbabwe, awarded on the finish of 2020, was additionally nicely below approach, with construction on schedule.
The supplies division, which contributed 67 p.c of working revenue within the pre-Covid-19 comparative interval, skilled steady working situations within the six months to August 31.
The infrastructure division skilled beneficial situations within the constructing sector and was nicely supported by the operations in Western Australia.
In the South African renewables sector, the delay within the start-up of the risk-mitigation IPP spherical of renewable power initiatives impacted this division’s profitability.
The group stated, nevertheless, this division was well-positioned to profit from the roll out of Round 5 work associated to the Renewable Energy Independent Power Producer Procurement Programme later within the year.
The stability sheet remained robust with a wholesome money stability all through the interval, which the group stated put it in a great position to take part within the elevated construction exercise in South Africa.
Raubex’s share worth traded up 1.56 p.c to R29.36 yesterday morning. Over the year, the share worth had elevated steadily by greater than 43 p.c.